When Investing in the Real Estate Sector in Turkey is going to be a Risk?

When Investing in the Real Estate Sector in Turkey is going to be a Risk?

18th October 2022

A question that may arise in the minds of many, especially in light of the current economic conditions around the world in general and in Turkey in particular, due to the depreciation of the Turkish lira against the dollar, is investing in Turkey still profitable and guaranteed as before, or is there a risk?


Certainly any investment carries a percentage of risk and loss, but there are some precautions that may help us avoid this if we realize them before making the investment, and in this article we will review some of the reasons that may increase the risk rate in real estate investment in Turkey.

Real estate investment has different types and according to the nature of the investment, the ratio of profit and risk alike differs, and of course there is a direct relationship between the high return on profit and the increase in risk in the investment. For example, we can divide into 3 sections for real estate investment:

1- Investment on plans: before the start of construction: it gives you a low price and therefore a higher profit in addition to convenient payment methods, but the risk increases due to the increased possibilities of failure, delay or exposure to fraud as the project is only on paper, nothing is tangible yet.

2- Investment in under-construction properties: It also provides you with a high profit, but the payment is limited, especially after the completion of 50% of the construction work, and it is considered a middle ground in terms of both risk and profit.

3- Investment in ready-made real estate: It is a safe investment at a higher rate than its predecessors, as you see the property in front of your eyes, but in return it gives you an average profit.


 The risks that you may face when investing in real estate in Turkey:

First: Misplaced Investment:

Not having a good study of the real estate market in Turkey and the nature of the investment that you are making and setting your goal accurately before starting any step may put you on the cusp of losing or not achieving your primary goal of investment, whether by obtaining a permanent and fast return or by maintaining and increasing the value of your money in the long term and others.

Poor consideration of the nature of the investment you are making and the area in which your property is located may expose you to disappointment at the end.

Second: Being defrauded:

A rich market always attracts scammers as well as strong investors, so you should be careful and focus when choosing the institution or individuals with whom you will place your investment.

It is also important not to close your eyes to the extreme special offers in an exaggerated way. If the price of the property differs by a large percentage from the rest of the similar properties in the surrounding area, this may mean that there is a problem that will arise later.

Third: Problems when offering the property for rent:

Renting your property in order to get a stable financial return may put you in front of various problems with the tenants from delaying the monthly rent, damage to the place or other legal problems.


So, here are 4 points that you should pay attention to if you want the value of your investment to rise and the risk to be reduced:

1- The first and most important point is the selection of the real estate developer, so do a detailed research on the construction company based on the project and its reputation in the market, and search and inspect its old projects that have been completed, their delivery dates and others.

2- Study the project site carefully in terms of its proximity or distance from commercial centers, main roads, transportation, government projects...etc.

3- Every project has a goal and a vision set by the engineers behind it and designed based on that idea. You have to make sure that those goals are in line with the reality of the market and with your investment goal that you seek.

4- Supply and demand for the project

5- Finally, use the experts in the field of real estate in Turkey and ask for their advice before starting any step in your new investment.


Edited By Aldar Real Estate ©